Trading Statement

PR no:01/14

7.00am, 16 January 2014

DIXONS RETAIL PLC

A further year of christmas growth

Dixons Retail plc, one of Europe's leading specialist multi-channel electrical retailing and services companies, today announces trading for the period from 1 November 2013 to 4 January 2014.

· The Group delivered a second consecutive year of strong growth over the important Christmas period.

· UK & Ireland like for likes up 5% with further market share gains and a particularly strong post Christmas sale period.

· Well-established multichannel offering with internet-led sales growing by 23%

· Northern Europe like for likes up 2%, trading ahead of its competitors.

· Total sales growth in Greece of +3% driven by our successful wholesale business, with retail like for likes down 8%.

· Group gross margins down 0.5%.

· Completion of the sale of Pixmania confirmed on 31 December 2013, delivering the most significant of the three disposals that streamline the Group.

Sebastian James, Group Chief Executive, commented:

"This has been a lively Christmas with plenty of ups and downs and I am pleased to report that we have turned in a good performance. We have consolidated last year's strong gains and I am confident that we have gained further market share.

In the UK & Ireland, the "Black Friday" weekend was remarkably busy, but was followed by a somewhat quieter couple of weeks as we approached Christmas Day. From Boxing Day, the business took off like a rocket - in fact, Boxing Day itself was the biggest in Dixons' UK history with more than £100,000 flowing through our tills every minute. This is especially encouraging as we have already passed the anniversary of Comet's departure from the market. Many thanks, not only to our store colleagues who did a terrific job looking after our customers, delivering record levels of advocacy. Also thank you to our Knowhow colleagues who performed minor miracles in delivering and installing all these new purchases through some, to say the least, very wild weather.

Northern Europe performed well against a competitive backdrop, building on last year's exceptional growth and winning the festive scuffles with competitors in pretty much every market. Sweden and Finland had a particularly successful Christmas with Denmark and Norway a little less exuberant. Our Greek business is still operating in a tough consumer climate but has rallied well with a strong wholesale business taking it into growth.

These are good numbers, but I am mindful that what recovery there is in the UK is still fledgling, and we continue to plan accordingly. We have some very strong comparables in the fourth quarter and, with a later Easter as well, I expect performance in the remainder of our financial year to be more modest than the year to date. However, with great service and fantastic value in our stores and online I think all our businesses can continue to outperform our competitors in each of their markets."

- Ends -

For further information

David Lloyd-Seed, IR, PR & Corporate Affairs Director, Dixons Retail 01727 205065

Hannah Collyer, Head of Media Relations, Dixons Retail 01727 203041

Nick Cosgrove, Helen Smith Brunswick 020 7404 5959

Investors & Analysts Conference Call

Sebastian James and Humphrey Singer will host a conference call for Investors and Analysts at 9.00 am:

Dial in number: +44 (0) 1452 555566

Conference call ID 31012401

A replay facility will be available after the call using the following details:

Dial in number: +44(0) 1452 550 000

Conference call ID 31012401

Information on Dixons Retail plc is available at http://www.dixonsretail.com

Follow us on Twitter @DixonsRetail

NOTES:

1) Like for like sales are calculated based on underlying store and internet sales using constant exchange rates. New stores are included where they have been open for a full financial year both at the beginning and end of the financial period. Closed stores are excluded during the period of closure. Customer support agreement sales are excluded from all UK like for like calculations. Underlying sales are defined as excluding trading results from businesses exited (PC City Spain and Equanet) and discontinued operations (Electroworld Turkey, Unieuro and PIXmania).

2) UK & Ireland comprises Currys, CurrysDigital, Dixons Travel, PC World, combined 2-in-1 Currys and PC World, Harrods concession, operations in Ireland, Dixons.co.uk (closed in October 2012), and Knowhow.

3) Northern Europe comprises the Elkjøp group and ElectroWorld in the Czech Republic and Slovakia.

4) Greece comprises solely our Kotsovolos business.

5) Movements in the financial position, including levels of borrowings, of the Group since the last balance sheet date are reflective of the trading performance and statements outlined above. Other than this, there have been no significant changes in the financial position of the Group.

6) Certain statements made in this announcement are forward looking. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.